South Africa company registration
Healy Consultants Group PLC
31 March, 2014
South Africa company formation is a gateway to the rest of the continent a market of nearly a billion people. It is the economic powerhouse of the African continent, with a GDP of US$384 billion, comprising around 30% of the entire GDP of Africa. Doing business in South Africa offers certain significant advantages.
Firstly, a South African company is an ideal African headquarters as whole foreign ownership is allowed, legal documents are prepared in English and the country boasts the best skilled labour in Africa. The company can also invest in every South Africa business sector without restriction. In addition, international entrepreneurs interested in South Africa company formation easily obtain bank credit to establish their business. According to the World Bank's Ease of Doing Business 2013, South Africa is ranked number 1 in the world in terms of ease of getting access to bank credit.
The country also boasts 71 double tax treaties minimizing withholding taxes on income such as dividends, interest or royalties, with effect from January 2011, headquarter companies are allowed to raise and deploy capital offshore without exchange control approvals.
South Africa companies can benefit from more incentives if they are incorporated within the Industrial Development Zones. The incentives include i) no Vat or custom duty ii) 15% government grants on cost of plant and machinery acquired abroad iii) 15%-30% grant on cost of machinery, equipment, commercial buildings and vehicles to local and foreign-owned manufactures iv) compensation to foreign investors pursuing South Africa company incorporation for costs of moving new machinery and equipment from abroad. The abundance of cheap raw materials and labour makes South Africa a manufacturing hub. Skilled labour on an average costs US$1,000 per month while unskilled labour costs US$100 per month. It is one of the favourite locations for manufacturing of automobiles and automotive.
Before entering the South African market, having a good knowledge of the compliance regulations will facilitate the management of your business. Foreign investors should note that:
· South African law is founded on the Roman-Dutch law although many aspects of its law particularly the company laws, have been heavily influenced by English law.
· According to South African Law, every South African company must appoint a public officer following South Africa business setup. Most of our clients appoint one of the local staff members as public officer. If required, Healy Consultants will be pleased to be appointed as public officer for our client's firm to support South Africa company incorporation.
· In accordance with the South African Companies Act, a company shall as from the date of its incorporation have a legal registered office in South Africa. If required, Healy Consultants' South Africa business office will be the registered office address for your company following South Africa company registration.
· There is no requirement for local shareholders or directors to form a limited liability company in South Africa.
· Foreign companies can own real estate in South Africa without any restriction.
· The Companies Act 2008 requires all companies in South Africa to have at least one office address in the Republic, and to register the address with the SA commission.
· The Act requires all companies in South Africa to submit annual returns following South Africa business setup, including a copy of their annual financial statements and any other prescribed information.
· The Act requires all companies in South Africa to keep accurate and complete accounting records. All public companies must have audited financial statements and all private companies must have their annual financial statements either audited voluntarily or independently reviewed.
South Africa is currently the world's most attractive renewable energy market. According to Bloomberg 2012, investment in renewable energy in the country was US$5.5 billion. The country commits to reduce greenhouse gas emissions by 34% by 2020 and has a great need for more electricity. This is an attractive opportunity for foreign investors interested in pursuing South Africa company registration. Over the coming 5 years, South Africa will invite tenders from foreign companies to help develop infrastructure by spending US$82 billion on ports, roads, railway systems, electricity plants, hospitals, schools and dams.
« Go Back to Blogs